Question:

A war of the trading platforms? GMX (native to Arbitrum) - GNS (native to polygon, but announced will be launching on Arbitrum soon). Both platform native tokens (GMX - GNS) have seen meteoric price growth during a bear market. Since June GNS has gone from $0.68 to $3.68 and GMX has gone from $13.70 to $41.56

Observe Trading volume. Has one platform absorbed more volume than the other? How impactful is GNS volume to polygon? GMX volume to Arbitrum? Are there any insights that can reveal why Gains Network wants to move into the Arbitrum ecosystem?

Overview of analysis:

This analysis contains three major part:

• Activity of GNS token on Polygon network
• GMX domination on Arbitrum chain
• Trade comparison between two platforms

Two parameters have been used to set the time period and basis of this analysis. By the use of these parameters you can find out the over time stats.

Methodology:

The data provided by Flipside has been used to handle this analysis.

This dashboard divided into the three major sections as below:

• GNS token → 0xE5417Af564e4bFDA1c483642db72007871397896

• GMX token → 0xfc5A1A6EB076a2C7aD06eD22C90d7E710E35ad0a

• Transfer analysis→

  • Number of transfers and senders
  • Volume of each token
  • Domination of each token on network

• Trade Analysis→

  • Count of trade and traders, trader per day
  • Volume: Trade volume, average trade per day, 7-day moving average
  • Cumulative analysis

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Gain network trading platform:

Gains Network is a decentralized derivatives trading platform built first on the Polygon network and expanding to other decentralized networks.

On Gain networks, crypto derivative traders are allowed up to 150X leverage and up to 1000x for forex trades.

As a decentralized leverage trading platform, Gains Network allows users to predict if the price of an asset will rise or fall, correct predictions leading to profits. These profits are further accelerated as Gains Network offers high leverage without funding fees – as leverage isn’t directly borrowed, traders’ profits are their own. Howver, as with any leveraged trading, losses are also amplified.

As the central platform’s utility token, GNS is used or burnt when a trade is open or closed. The process of minting GNS is used to pay back the trader after these trades have gone through.

GMX trading platform

GMX is a decentralized platform for transactions with very low fees and zero Price Impact, which allows users to make perpetual transactions. Users can increase their trading power up to 30 times or in other words use 30X leverage.

The Native token of GMX platform called GMX token.

The reward of the liquidity providers of these pools is obtained from market makers, swaps transactions and leveraged transactions. What sets GMX apart from its competitors is the various benefits for GMX currency holders, pool liquidity providers, as well as the platform's inflation-free token economy.

Part 1: GNS token domination on Polygon

Findings:

First investigate on the GNS token transfer on Polygon:

• The GNS token has small domination on Polygon network.
• The distinct number of users is over 48k wallets for the past 90 days.
• The domination of GNS token on Polygon compared to other tokens and cumulative analysis shown the small usage for GNS.

Part 2: GMX token domination on Arbitrum

Findings:

In this part, the GMX token activity on Arbitrum has been investigated:

• The GMX on Arbitrum has larger domination than GNS on Polygon with over 300k unique senders for the past 90 days.
• The highest domination of GMX on Arbitrum occurred on the last week of August for the past 90 days.

Part 3: Trade comparison on various platforms

Findings:

This part contains the trade comparison between various platforms for GMX and Gain networks:

• The GMX platform has more usage than Gain network from all investigated aspects like count of usage, distinct users and volume of usage in USD.
• About 216 unique users have been interacted with GMX platform per day and the volume of trade per day for this platform is about 5.92 million USD.
• The average volume of usage for GMX and Gain network are really close together but GMX has larger average volume in USD.

Conclusion:

By the use of combination of the above parts, the following statements could be concluded:

• The GMX network on Arbitrum has larger domination than Gain network on Polygon.
• The average trade volume on Gain network of Polygon has been increased over time and passed GMX platform sometimes.
• It can be seen that the trading platform like GMX has higher share on Arbitrum and it can be the reason for moving Gain network to Arbitrum network.

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani

Useful links:

• Gain network
• GMX platform
• GNS token on Polygon
• GMX token on Arbitrum

Findings:

Now lets dive deeper into the trade on these platforms over time. Considered that the default time period of analysis is for the past 90 days and time basis on analysis is daily basis:

• The over time investigation on usage of various trade platforms shown the domination of GMX platform over Gain network.
• The highest trade volume in USD for GMX platform occurred on September 6 with over 28 million USD for the past 3 months.
• From the average trade volume in USD perspective, on September 14 over 4123 USD traded on GMX and its the highest amount in the past 90 days and the highest average trade volume for Gain network happened on August 20, 2022.
• The 7-day moving average trade volume on Gain network has been passed the GMX platform since October 14.

Findings:

• The highest count of GMX transfer and distinct senders on Arbitrum happened on the October 5 for the analysis on the past 90 days.
• Also from the volume of transfer aspect, the highest transfer volume of GMX token on Arbitrum occurred on October 5 with over 3.92 million tokens in the past 3 months.
• The average transfer volume of GMX token on Arbitrum reveals the highest amount happened on August 13 and 19 for the past 90 days.

Findings:

• The highest transfer and sender count for GNS token on Polygon happened on October 25 in the past 90 days.
• From the transfer volume point of view, the August 18 has the highest transfer volume with near 19.5 million tokens.
• The average transfer volume for GNS token on Polygon demonstrated the highest amount on August 18, 2022 for the past 90 days in the daily basis.